Cashflow Quadrant

I have recently read the book Cashflow Quadrant by Robert Kiyosaki.  It gave me a whole new insight as to how to look at making money.  The Quadrant is a guide to financial freedom, if it becomes the foundation for making and keeping money.

To envision the Quadrant, think of a vertical line intersecting the middle of a horizontal line.  Each quadrant is different.  Each quadrant requires different skill sets and personalities for a person to generate an income.

The top left quadrant is the Employee.  For the employee, the idea of security is often more important than money itself.    Because they fear economic uncertainty, they need to feel secure, by seeing all the details and benefits spelled out in a contractual agreement between them and the person or organization that hired them.

The bottom left quadrant is the Self Employed person.  These are the do-it-yourselfers who want to be there own boss.  They feel that the amount of income they make is dictated by how hard they work, rather than by a “boss.”  They have very independent personalities.  People in this group are small business owners, such as restaurateurs, consultants, massage therapists, dentists,  travel agents, carpenters, and artists, to name a few.  They hesitate to hire and train people to work for them, because they become their competition.  Independence is more important than money to these people.

The top right quadrant is the Business Owner.  Unlike the Self-Employed person, these people like to surround themselves with smart people from all four categories.  The motto of the Business Owner is, “Why do it yourself when you can hire someone else to do it for you?”  By setting up systems that hired employees can follow helps keep the business running, allowing you time to supervise the systems and envision new projects and streams of income.

The bottom right quadrant is the Investor  Investors make money with money.  They let their money work for them.  It is in this quadrant that money becomes converted to wealth.

Most of us were taught in school to grow up, get a job (be an employee), work for forty-plus years, and then retire and live on our social security.  But, the social security system can not be counted on, and most will have to continue working during their retirement years, just to survive.  We are not taught in school the truth about finances and financial security.

Robert Kiyosaki said, “The main reason people struggle financially is because they have spent years in school but learned nothing about money.  The result is that people learn to work for money…but never learn to have money work for them.”

Financial security and financial freedom are seldom found in the Employee or the Self-Employed quadrants.  True security and freedom are found only on the right side of the Quadrant…the Business Owner and the Investor.

During our thirty-five years of homeschooling, we have come to take an entrepreneurial road less traveled, where we are learning and teaching our children to understand about true financial freedom.  Our goal is to train them (and us) to become Business Owners and Investors.


Determining Your Calling

Who am I?

Why was I born?

What is my purpose in life?


I have been reading  The Call by Os Guinness.  It is about what it means to be called by God. And what is a calling?

God created each of us with our own unique set of gifts, to be used for stewardship and service to others, all to God’s glory.  Some of the gifts spoken about in the Bible are: prophecy, serving, teaching, exhortation, giving, mercy, leadership, word of wisdom, word of knowledge, faith gifts of healing, distinguishing between spirits, tongues, and interpretation of tongues.  God may give one gifting, or multiple giftings.

God’s calling on our lives is based on our giftedness.  Our calling is the specific purpose for which God created us.  It is in and through our calling that we find our identities.  Our calling gives “us” meaning.

Our primary calling is as a follower of Christ.  Our secondary calling is to live, to think, to speak, and to act in a way that will please and bring glory to God, our Creator and Savior. Our secondary calling encompasses our vocation—i.e., pastor, lawyer, doctor, contractor, secretary, writer, missionary, homeschooling parent, etc.  Whatever we are “called” to be, God gives us the gifts to accomplish the calling.

1 Corinthians 10:31 says, “Whatever therefore ye eat, or drink, or whatsoever ye do, do all to the glory of God.”

Os Guinness said, “There is no sacred vs. secular, higher vs. lower, perfect vs. permitted, contemplation vs. action where calling is concerned.  Calling equalizes even the distinctions between clergy and layperson.  It is a matter of   ‘everyone, everywhere, and in everything’  living life in response to God’s summons.” (emphasis mine)